IPO.. NU TEK INDIA

Nu Tek India is entering the capital market on 29th July 2008 with a public issue of 45 lakh equity shares of Rs.10 each in the band of Rs.170 to Rs.192. Of this, fresh issue is of 35 lakh shares while offer for sale is of 10 lakh shares.The company is a Telecom infrastructure service provider offering infrastructure rollout solutions for both mobile and fixed telecommunications networks by offering services to Telecommunication Equipment Manufacturers, Telecom Operators and third party infrastructure leasing companies.For FY 08 the total income of the company was at Rs.97 crores with EBITDA of Rs.32 crores, giving a margin of 33.66%. PBT was placed at Rs.30.29 crores while PAT was at Rs.21.27 crores, resulting in an EPS of Rs.15.50 on present equity base of Rs.13.76 crores. FY 08 the company has posted a growth of 50% in topline while 100% in bottomlines.Share at lower band of Rs.170 is definitely attractive. However, even at the upper band of Rs.192, based on historic earnings, it is issued at a PE multiple of about 12 times, while at about 10 times, based on FY 09 earnings. Even this is considered quite good, and price is likely to get discovered at the upper band of Rs.192 and even at that level it can prove to be a rewarding investment.